Eastern Coalfields posts operating profit

EASTERN Coalfields Ltd (ECL) has also joined the league of profit-making subsidiaries of Coal India Ltd (CIL), recording an operational profit of around Rs 43 crore during April-December 2005 against a loss of about Rs 242 crore for the same period of previous fiscal. The company anticipates a profit of around Rs 250 crore on a total production of about 31.5 million tonnes (mt). This is for the first time since inception that ECL has earned an operational profit.

According to the Chairman & Managing Director of ECL, Mr Deepak Chakraborty, the company made a positive growth of 9.5 per cent in coal production during the period under review compared to the same period last year, which is said to have been the highest growth made by any of the subsidiary companies of CIL in the said period of the current fiscal.

The company expects to turn its net worth positive during 2009-10 and will come out of BIFR from that date.

Mr Chakraborty said that the company has firmed up an investment plan to expand the capacity of the Rajmahal opencast mine from 10.5 mt to 17 mt per annum.

(This article was published in the Business Line print edition dated January 4, 2006)

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